Top 8 Online Checking Accounts – August 2023

Top 8 Online Checking Accounts - August 2023

The Best Online Checking Accounts for Low Fees and Unique Perks

If you’re looking for the best checking accounts at online banks, then you’re in luck. These accounts offer low fees, unique perks, and a combination of both. Online checking accounts should provide you with access to a wide network of ATMs and other benefits such as high interest rates. In this article, we will explore the top online checking accounts available to help you make an informed decision.

Our Picks for the Best Online Checking Accounts

When it comes to finding the best online checking accounts, there is no one-size-fits-all solution. Different accounts have their own strengths and limitations. However, we have compiled a list of top picks based on customer reviews and expert opinions:

Capital One 360 Checking®: Best for Minimal Bank Fees and Lenient Opening Requirements
Varo Bank Account: Best for Easy Deposits
Redneck Bank Rewards Checkin’ Account: Best for a High Interest Rate
SoFi Checking and Savings: Best Checking/Savings Combo
Upgrade Rewards Checking: Best for Cash-Back Rewards
Axos Bank Rewards Checking: Best for ATM Access
Schwab Bank High Yield Investor Checking® Account: Best for Strong Customer Service
Wealthfront Cash Account: Best Cash Management Account

It’s important to note that all financial institutions on this list are protected by FDIC or NCUA insurance, ensuring the safety of your money.

How We Selected the Best Online Checking Accounts

To determine the best online checking accounts, we consulted banking and financial planning experts who provided their insights and recommendations. We considered two dozen online financial institutions, narrowing down our choices based on features, perks, and fee structures. We evaluated criteria such as monthly service fees, out-of-network ATM fees, overdraft fees, foreign transaction fees, and unique rewards or bonuses offered by each institution.

Expert Insights on Checking Accounts

We spoke to several experts in the field to gain valuable insights into what makes a checking account good and how to find the right fit:

Roger Ma, certified financial planner with lifelaidout® and author of “Work Your Money, Not Your Life”:

“I would look at the ATM branch locations and then minimum balance amounts to not incur a monthly fee. I think there’s other stuff that could make life easier, whether it’s free checks, online bill pay, are they in the Zelle network?”

Sophia Acevedo, certified educator in personal finance, banking reporter at Personal Finance Insider:

“I would look for a checking account that either doesn’t have any monthly service fees or offers multiple ways to waive the fee. I would also look at customer support availability and mobile app ratings.”

Tania Brown, certified financial planner at SaverLife:

“Obviously, you want to make sure it’s FDIC insured. Also, your banking experience — do you like walking into a bank? Well, then you need someone local. Do you just not care if you ever see your bank? Then you’re okay online. Do you write checks? Do you not write checks? So it’s thinking through how your experience with it is going to be before you make that decision.”

Mykail James, MBA, certified financial education instructor at BoujieBudgets.com:

“The No. 1 thing about a checking account is you should know what provider the debit card is coming from. And a lot of people don’t think about that because there are places that don’t accept MasterCard or don’t accept an Amex.”

These expert insights highlight the importance of considering factors such as ATM locations, fees, customer support, mobile app ratings, and personal preferences when choosing a checking account.

The Best Checking Accounts and Their Unique Features

Let’s take a closer look at some of the best checking accounts and what sets them apart:

Capital One 360 Checking®: Best for Minimal Bank Fees and Lenient Opening Requirements

Capital One 360 Checking® is a strong online bank offering a well-rounded checking account. It has a $0 minimum opening deposit, no monthly service fee, and no foreign transaction fees. The account also provides various overdraft protection options. You can receive your paycheck up to two days early with its early paycheck feature and have access to over 70,000 fee-free ATMs. Capital One 360 also accepts cash deposits. However, it charges a $2 out-of-network ATM fee, and you won’t be refunded fees charged by other ATM providers.

Varo Bank Account: Best for Easy Deposits

The Varo Bank Account is an excellent option for those looking for an online account with convenient deposit methods. You can receive your paycheck up to two days early with direct deposit or use the mobile app to deposit checks. Varo also allows cash deposits at Green Dot locations, which can be found at popular retailers like Walmart, CVS, Walgreens, and Kroger. Additionally, this account offers up to 6% cash back at select retailers. Keep in mind that cash deposits at Green Dot locations may incur a small fee, and Varo doesn’t offer joint bank accounts.

Redneck Bank Rewards Checkin’ Account: Best for a High Interest Rate

Redneck Bank stands out with its high bonus interest rate of 5.30% APY on account balances up to $15,000, and 0.50% APY on amounts over $15,000. To qualify for the bonus rate, you need to make 10 qualifying debit card transactions per monthly statement cycle and receive online bank statements. However, failing to meet the requirements will result in earning a standard rate of 0.25% APY. Redneck Bank also requires a minimum opening deposit of $500, which may not suit individuals looking for an account with a lower initial deposit requirement.

SoFi Checking and Savings: Best Checking/Savings Combo

SoFi Checking and Savings is an all-in-one bank account that combines the features of both checking and savings accounts. Along with a debit card and early direct deposit, it offers a savings tool called Money Vaults, designed to help you save for specific goals. This rewards account allows you to earn interest, cash back, and a cash bonus. By opening a SoFi Checking and Savings account, you can receive a cash bonus of up to $250, provided you meet certain deposit requirements. Setting up a direct deposit is recommended for maximum benefits and higher interest rates.

Upgrade Rewards Checking: Best for Cash-Back Rewards

Upgrade Rewards Checking offers outstanding cash-back rewards, including 2% cash back on everyday debit card purchases and payments on utilities and monthly subscriptions, and 1% cash back on all other debit card purchases. The 2% cash back perk has a limit of $500 per year. Once the annual limit is reached, you’ll earn 1% cash back on all eligible purchases for the remainder of the year. To enjoy additional benefits such as ATM fee reimbursements and loan discounts, you need to maintain a $2,500 daily checking account balance, receive at least $1,000 in direct deposits each month, or make eight or more monthly debit card purchases.

Axos Bank Rewards Checking: Best for ATM Access

Axos Bank Rewards Checking offers access to a robust ATM network, allowing you to make free withdrawals at approximately 91,000 ATMs across the US. In addition, this account provides unlimited domestic ATM fee reimbursements, unlike some other banks on the list. To earn interest with Axos Bank Rewards Checking, you must meet certain requirements, such as receiving a minimum of $1,500 in direct deposits per month. The more goals you achieve, the higher your APY can be, with the maximum available APY being 3.30%.

Schwab Bank High Yield Investor Checking® Account: Best for Strong Customer Service

Charles Schwab stands out with its high level of customer service. Though primarily known for investment services, it also offers banking products, including the Schwab Bank High Yield Investor Checking® Account. According to the 2022 JD Power Direct Banking Satisfaction Study, Charles Schwab Bank ranked the highest in overall customer satisfaction among checking account providers. The account provides 24/7 online chat support, and you can reach a representative by phone during extended hours. It’s important to note that to open a Schwab Bank High Yield Investor Checking® Account, you must also have a Schwab brokerage account.

Wealthfront Cash Account: Best Cash Management Account

Wealthfront Cash Account, offered by the online investing platform Wealthfront, offers a high interest rate of 4.80% APY on all balances over $1. Fintech companies like Wealthfront partner with banks to provide FDIC insurance for cash management accounts. Wealthfront spreads your money across multiple banks, enabling them to insure up to $5 million in an individual bank account. This makes it a great option if you’re looking for a high-interest cash management account.

Other Online Checking Accounts to Consider

While the above accounts are our top picks, there are several other online checking accounts available. Here are a few additional options:

Quontic Cash Rewards Checking Account: Offers 1% cash back on eligible debit card purchases.
Chime Checking Account: Provides early direct deposit and cash deposits at Green Dot locations.
Fidelity Cash Management Account: Combines saving, spending, and investing in one account.
Consumers Credit Union Free Rewards Checking Account: Offers up to 5% APY on the first $10,000 in your account.
Discover Cashback Debit Account: Provides 1% cash back on debit card purchases.
LendingClub Rewards Checking Account: Allows cash-back rewards but requires a minimum balance.
Bank5 Connect High-Interest Checking Account: Requires at least $100 to earn interest.
FNBO Direct Online Checking Account: Offers unique features like free stop payments but lacks paper checks.
Dora Financial Everyday Checking Account: Caters to customers with Spanish language needs.
Amalgamated Bank Give-Back Checking Account: Allows you to donate a portion of interest earned to a partnered charity.
Daylight Account: Offers customization options and cash back at LGBTQ+ allied businesses.
Empower Personal Cash™: Offers minimal fees but has a lower interest rate than Wealthfront.
Alliant High-Interest Checking Account: Offers unlimited ATM reimbursement but has lower interest rates than top picks.
NOVA Perks™ by Blue Checking Account: Comes with unique benefits but may have associated fees.
Connexus Xtraordinary Checking Account: Provides high-yield checking options but has a lower interest rate than Redneck Bank.
Bethpage Federal Credit Union Free Checking Account: Offers decent interest rates but lower than Redneck Bank.
Ally Spending Account: Pays interest on balances but lacks unique features.
CIT Bank eChecking Account: Requires $100 minimum deposit and provides limited fee-free ATM visits.
Betterment Checking Account: Offers reimbursement for ATM and foreign transaction fees but has a lower interest rate.
TIAA Bank Basic Checking: Requires a $5,000 average daily balance for unlimited ATM reimbursement.
First Tech Rewards Checking®: Pays high interest rates but has membership requirements.

Bank Trustworthiness and Public Scandals

When considering the trustworthiness of a bank, it’s essential to look at their ratings and any public controversies they may be involved in. The Better Business Bureau (BBB) assigns grades to companies based on factors such as customer complaints and business practices. While BBB ratings provide some insight, they aren’t the sole indicator of a bank’s reliability.

Among our top picks, Capital One has been involved in a public controversy related to a data breach. The company paid $80 million after being held partially responsible for a 2019 breach in which a hacker accessed over 100 million credit card applications. It’s important to note that actions have been taken to strengthen security since the incident.

Conclusion

Finding the best online checking account involves considering factors such as fees, perks, customer support, and personal preferences. Our list of top picks highlights the options available and their unique features. Whether you prioritize low fees, high interest rates, cash-back rewards, or other benefits, there is an online checking account to suit your needs. Take the time to explore each account’s strengths and limitations to make an informed decision and ensure that your banking experience aligns with your financial goals.